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Delhi HC refuses to allow Naresh Goyal to travel overseas, MCA terms it a case of financial fraud of Rs 18,000 crore

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The Delhi High Court has sided with the government’s decision to prevent Naresh Goyal, the founder of the grounded Jet Airways, from travelling overseas even as the counsel for the Ministry of Corporate Affairs (MCA) stated — for the first time — before the court that the financial fraud at the airline is pegged at Rs 18000 crore.

The Delhi High Court has sided with the government’s decision to prevent Naresh Goyal, the founder of the grounded Jet Airways, from travelling overseas even as the counsel for the Ministry of Corporate Affairs (MCA) stated — for the first time — before the court that the financial fraud at the airline is pegged at Rs 18000 crore.
There is a Look Out Circular (LOC) issued against Goyal after an inspection by the MCA found large-scale irregularities at Jet Airways, which shuttered operations in April due to acute cash crunch.
A Look Out Circular is issued against a person directing the immigration authorities to ensure that he or she does not leave India through an airport or a seaport.
On May 25, Goyal and his wife Anita Goyal were stopped from leaving the country by immigration authorities at Mumbai airport minutes before their aircraft was about to take off for London via Dubai.
“Why should they not stop you when you are leaving after the Jet trouble has surfaced?” the court observed. “If you go missing like (fugitive diamantaire) Nirav Modi, the government will have to spend money and time to get you back.”
Fugitive diamantaire Nirav Modi is contesting extradition proceedings in London, like embattled liquor tycoon Mallya, who is out on bail in the UK.
The court added that Goyal has not established his purpose for travelling abroad.
The court said it would allow Goyal to travel overseas if he was willing to give a guarantee of Rs 18,000 crore. The next hearing is on August 23.
Naresh and Anita Goyal had resigned from the board of Jet Airways, which the former founded 26 years ago, in March following a debt restructuring plan. He had also resigned as the airline's chairman.
Faced with the acute financial crunch, the once-storied Jet Airways stopped operations in mid-April. With efforts to find investors failing to take off, the airline is now under insolvency proceedings.
The carrier is saddled with some $1.2 billion in bank debt, and Goyal and his wife stepped down from the airline’s board in March amid the crisis.
 

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